Peopleschampion.com fears inflation hike will hit first-time buyers.

First-time buyers face a tougher time because a number of fixed rate deals have been withdrawn from the market.

Jim Spowart, the chairman of Peopleschampion.com, said: “The inflation announcement this week has probably caused lenders to bring forward their decisions. It may seem like a knee-jerk decision to remove fixed rate deals from the market, but it probably would have happened anyway.”

“But the market needs first-time buyers - otherwise the whole market begins to stagnate. Fixed rates have to be the best advice for first time buyers because many have to borrow to their upper limits.”

But with fixed rate products being withdrawn Peopleschampion.com expects lenders to be re-assessing the situation, ready to announce a raft of new deals with increased fixed rates. Jim Spowart says that it is imperative that consumers shop around to eke out the best deals.

“This all has an impact on first-time buyers and, in turn, the rest of the housing market in the UK. I can also see some people might begin to think twice about moving - and this is traditionally one of the busiest times of the year. There is a danger the market could grind to a halt.”

The lenders that have so far announced the withdrawal of fixed-rate products in the last week are:

Skipton

• 3 Year Fix 95% LTV 5.69%
• 5 Year Fix 75% LTV 5.59%
• 5 Year Fix 95% LTV 5.69%

Newcastle Building Society

• 2 Year fixed - 5.22%
• 10 Year fixed rate - 5.35%

Newbury Building Society

• 5 Year fixed rate mortgage (fixed until 31 Jan 2012)
• 5 Year fixed rate shared ownership mortgage (fixed until 31 Jan 2012)

Principality Building Society

• 10 Year 5.59 fixed rate product
• 1 Year 4.79% fixed rate product

Alliance & Leicester

• Low Start 1 Year Fixed - 2.99%
• 2 Year Fixed - 4.99%
• 2 Year Fixed - 4.79% min LTV 91.01%
• 2 Year Fixed - 5.14%
• 2 Year Fixed Feesaver - 5.69%
• Low Start 2 Year Fixed - 4.89%
• 3 Year Fixed - 5.29%
• 3 Year Fixed Feesaver - 5.74%
• 5 Year Fixed - 5.33%
• 5 Year Fixed Feesaver - 5.79%
• Premier 2 Year Fixed - 4.79%
• Premier 2 Year Fixed - 4.99%
• Premier 5 Year Fixed - 5.23%

Northern Rock

• 1 Year Flexible Fixed Rates from 4.99%
• 2 Year Flexible Fixed Rates from 5.09%
• 2 Year Flexible Fixed Rates from 4.09%
• Together 1 Year Fixed Rates from 5.85%
• Together 2 Year Fixed Rates from 5.95%

Halifax

• Details TBC

Yorkshire Building Society

Products to be withdrawn 13th April

• Offset 5.79% Fixed Rate until 30/04/09
• Offset 5.69% Fixed Rate until 30/04/12
• Offset 5.99% Fixed Rate until 30/04/12
• Offset 6.09% Fixed Rate until 30/04/12
• 3 year BoE Tracker + 0.15%
• 3 year BoE Tracker + 0.49%
• 4.79% Fixed Rate until 30/04/09
• 5.39% Fixed Rate until 30/04/09
• 6.09% Fixed Rate until 30/04/09
• 5.39% Fixed Rate until 30/04/10
• 6.09% Fixed Rate until 30/04/10
• 5.49% Fixed Rate until 30/04/12
• 5.99% Fixed Rate until 30/04/12
• 5.35% Fixed Rate until 30/04/17
• 5.79% Fixed Rate until 30/04/17
• 2.10% discount for 2 years
• 1.40% discount for 2 years

West Bromwich Building Society

• Buy to Let - 2 Year Fixed - 5.08% fixed until 30/04/09
• Buy to Let - 2 Year Fixed - 5.45% fixed until 30/04/09

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